Order Types & Execution

A buy limit order is placed below current price to buy at support, expecting price to bounce upward. Used for "buying the dip" strategies.

A buy stop is placed above current price to trade breakouts. It triggers when price breaks resistance with momentum, entering the trade automatically.

Execution covers how orders are routed, filled, and confirmed, with latency, liquidity, and broker model determining quality.

A fill occurs when your order executes at a specific price and size, with quality influenced by liquidity, order type, and platform latency.

A Fill or Kill order demands immediate and complete execution at the specified price, otherwise it cancels instantly—a strict condition traders use when partial fills are unacceptable.

An Immediate or Cancel order executes whatever quantity is available at the desired price instantly and cancels the remainder, balancing speed with flexibility for partial fills.

Latency is the time delay between sending an order and receiving confirmation, with higher latency increasing slippage and harming strategies that rely on fast execution.

A market order executes immediately at the best available current price. It guarantees execution but not the exact price due to potential slippage.

Order flow is the analysis of buy and sell orders to understand where institutional traders are positioned and predict price movements.

A partial fill happens when only part of your order executes at the requested price, leaving the remainder pending until more liquidity becomes available or the order expires.

Pending orders are instructions to enter a trade automatically when price reaches a predetermined level. They include limit orders and stop orders.

A requote occurs when your broker cannot execute at the requested price and offers a different price. Common during high volatility and with market maker brokers.

A sell limit order is placed above current price to sell at resistance, expecting price to reverse downward. Used for selling rallies and range trading.

A sell stop is placed below current price to trade breakdowns. It triggers when price breaks support with downward momentum.